Orkla India IPO: MTR and Eastern Brand Owner Plans Complete Offer for Sale
Orkla India, the powerhouse behind popular spice and packaged food brands MTR and Eastern, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking the first step towards launching its Initial Public Offering (IPO).
According to the DRHP filed on Tuesday, the IPO will be a complete Offer for Sale (OFS) involving 2.28 crore equity shares, which will be offloaded by the company’s promoters and existing shareholders. This means that the company will not raise any fresh capital, and all proceeds will go directly to the selling shareholders.
Key Highlights of Orkla India’s IPO Filing:
- Type of Issue: 100% Offer for Sale (OFS)
- Total Equity Shares Offered: 2.28 crore
- Promoters Selling Stake: Orkla Asia Pacific Pte Ltd
- Other Shareholders Selling Stake: Navas Meeran and Feroz Meeran
- Promoter Holding (Pre-IPO): 90% (Orkla Asia Pacific Pte Ltd & Orkla ASA)
- Individual Shareholders: Navas Meeran & Feroz Meeran hold 5% each
Orkla India, formerly known as MTR Foods, is a leading Indian packaged food company operating in multiple categories including spices, ready-to-eat meals, masalas, breakfast mixes, and sweets. It retails under the household names MTR, Eastern, and Rasoi Magic.
Market Landscape & Industry Outlook:
As per a report by Technopak, the Indian packaged food industry was valued at ₹10.18 lakh crore in FY24, growing at a CAGR of 10.8% since FY19. Orkla India stands as a major player in this rapidly growing segment, riding on strong brand equity and a loyal consumer base.
️ IPO Lead Managers:
- ICICI Securities
- Citigroup Global Markets India Pvt Ltd
- JP Morgan India Pvt Ltd
- Kotak Mahindra Capital Company Ltd
Strategic Moves Before the IPO:
In March 2025, as part of a corporate governance revamp, Orkla India appointed four independent directors to its board, signaling strong intent to align with best practices and strengthen investor confidence ahead of the IPO.
What This Means for Investors:
With a legacy of trusted food brands and a strong position in India’s fast-growing FMCG sector, Orkla India’s IPO is expected to attract significant investor attention. However, as it is an OFS, prospective investors should note that no fresh capital is being infused into the business, and the offering is solely a shareholder exit event. Learn Stock Market Investing with ISFM
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